Crude oil traded at $102 per barrel on Monday, retreating from an earlier four-month high of $105, after US President Trump announced that Russia and Ukraine had agreed to halt strikes on each other’s energy infrastructure. Earlier attacks on Russian refineries had curtailed the country’s processing capacity and forced the major producer to become a net diesel importer since July. Even so, constrained supply from the Middle East kept crude prices above the $100 mark.
Saudi Arabia was compelled to shut its East–West pipeline following attacks originating from Iraqi territory. The disruption idled infrastructure that had been transporting 7 million barrels per day of Saudi crude to the Red Sea, serving as a key alternative route after shipments through the Persian Gulf were halted by Iran’s blockade on GCC oil exports. Meanwhile, planned talks between the GCC and Iran—intended to coordinate efforts to restore regional oil supply—were postponed by Tehran.
